§ 22. Sir PARK GOFFasked the Secretary of State for Foreign Affairs whether, in view of the default upon the Austrian second League of Nations' loan of 1930 and the impending League of Nations' loan to Austria, he will state the terms of control of Austrian revenues internationally or, alternatively, the method by which it is proposed to prevent a recurrence of the results unforeseen by the League in its recommendation of earlier loans to Austria?
§ Sir J. SIMONMy hon. and learned Friend is under a misapprehension; the International Loan to Austria of 1930 was not issued under under the auspices of the League of Nations. The measures of reform by which it is hoped to restore financial equilibrium in Austria and to ensure the resumption of transfers on the Guaranteed Loan of 1923 and on the International Loan of 1930 are set out in the Protocol of the 15th July, 1932, of which I shall be happy to send a copy to my hon. and learned Friend.
§ 23. Sir P. GOFFasked the Secretary of State for Foreign Affairs the loans raised here for Hungary on the recommendation of the League of Nations; whether the League took adequate steps to prevent British subscriptions to those loans from being applied to the Boletta funds; and whether he will, in view of the defaults causing capital losses, refuse to allow further loans for foreign countries to be raised here by public subscription under the recommendation of the 586 League of Nations unless the League through its members accepts financial responsibility for principal and interest?
§ Sir J. SIMONThe only loan issued by Hungary under the auspices of the League of Nations was the Reconstruction Loan of 1924; the Boletta fund was instituted in 1930 and no part of the proceeds of the loan of 1924 were utilised for meeting losses thereon. In reply to the last part of the question I would refer my hon. and learned Friend to the reply given to my hon. and gallant Friend the Member for West Birkenhead (Lieut.-Colonel Allen) on 2nd May last.